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Personal Investment Products - China - June 2015

Published By :

Mintel

Published Date : Jun 2015

Category :

Banking

No. of Pages : N/A

Most individual investors in China are not sophisticated yet. This gives financial institutions a good opportunity to provide professional suggestions and help people make better investment decisions.

Financial institutions should also lower the minimum investment amount required, simplify the transaction procedures and enrich the meaning of making investments to engage more consumers to buy investment products.
Table of Content

Introduction

Definition
Figure 1: Definition of low/middle/high income groups, by city tier
Methodology
Abbreviations

Executive Summary

The consumer
Who are managing the household finances?
Consumers prefer investing to saving
Figure 2: Ways of managing household disposable income, April 2015
Consumers prefer investment products that require low minimum investment amount
Figure 3: Ownership of investment products, April 2015
Not having enough knowledge is the biggest barrier against investing
Figure 4: Reasons for not buying financial investment products, April 2015
Chinese consumers’ consideration factors concentrate on risks and turns
Figure 5: Important consideration factors in choosing investment products, April 2015
Chinese investors rely on recommendations from others
Figure 6: Opinions on the credibility of information sources for choosing investment products, April 2015
In general, Chinese investors are still quite conservative
Figure 7: Attitudes towards personal investment products, April 2015
Four consumer segments identified by Mintel
Meet the Mintropolitans
Key issues
How sophisticated are investors in China?
Apply the learning from Yu’E Bao in financial product innovation
Simplify the transaction procedures to offer a better experience
Make the investments more interesting to engage Chinese investors
What we think

Issues and Insights

How sophisticated are investors in China?
The facts
The implications
Apply the learning from Yu’E Bao in financial product innovation
The facts
The implications
Simplify the transaction procedures to offer a better experience
The facts
The implications
Make the investments more interesting to engage Chinese investors
The facts
The implications

Trend Application

Let Kids be Kids
Return to the Experts
Prepare for the Worst

Background – Current Macroeconomic Conditions and Popular Investment Products

Key points
Rising disposable income drives enthusiasm in personal investment products
PBOC’s monetary policies favour the investment market
Figure 8: Benchmark lending and deposit rate in China, October 2010-May 2015
The bullish stock market since mid-2014
Common financial investment products in China market
Figure 9: Comparison of common financial investment products in China

The Consumer – Ways of Managing Household Finance

Key points
Who are active in managing household finances?
Figure 10: Responsibility of managing household disposable income, by age, April 2015
Figure 11: Responsibility of household disposable income, by demographics, April 2015
Consumers seek higher return from financial investment products
Figure 12: Ways of managing household disposable income, April 2015
Men are more active investors than women
Figure 13: Ways of managing household disposable income, by gender, April 2015
Investment ownership strongly skews to the well off
Figure 14: Ways of managing household disposable income, by monthly personal income, April 2015
Education level drives investment enthusiasm
Figure 15: Ways of managing household disposable income, by education level, April 2015

The Consumer – Ownership of Investment Products

Key points
Popularity of financial investment products
Figure 16: Ownership of investment products, April 2015
Figure 17: Ownership of investment products, “I have never bought this”, April 2015
Treat men as expert investors
Figure 18: Ownership of investment products, “Have bought this product”, by gender, April 2015
Figure 19: Ownership of investment products, “I own it currently”, by gender, April 2015
The demand for insurance goes up as people get older
Figure 20: Ownership of insurance products, “I own it currently”, by age and income, April 2015

The Consumer – Reasons for Not Buying Financial Investment Products

Key points
Lack of knowledge is the biggest barrier
Figure 21: Reasons for not buying financial investment products, April 2015
People are most worried about the high risk of investing in stocks
Help people to start small by innovating wealth management products

The Consumer – Important Consideration Factors When Choosing Financial Investment Products

Key points
Risk and return are core concerns
Figure 22: Important consideration factors in choosing investment products, April 2015
Women and younger consumers are more suitable for regular investment plans
Figure 23: Important consideration factors in choosing investment products, by gender and age, April 2015
High earners are more likely to look beyond the surface
Figure 24: Important consideration factors in choosing investment products, by monthly household income, April 2015

The Consumer – Opinions on the Credibility of Information Sources

Key points
Consumers mostly rely on recommendations from others
Figure 25: Opinions on the credibility of information sources for choosing investment products, April 2015
Compared to men, women are less active investors
Figure 26: Opinions on the credibility of information sources for choosing investment products, by gender, April 2015
Consumers from tier two/three cities rely much more on bank staff/wealth managers
Figure 27: Opinions on the credibility of information sources for choosing investment products, by city and tier, April 2015

The Consumer – Attitudes towards Personal Investment Products

Key points
Most consumers agree it’s better not putting all your eggs in one basket
Figure 28: Selected attitudes towards personal investment products, April 2015
In general, Chinese investors are still quite conservative
Figure 29: Selected attitudes towards personal investment products, April 2015
Figure 30: Agreement with selected attitudes towards personal investment products, by age and monthly household income, April 2015

The Consumer – Segmentation

Key points
Mapping out the different consumer clusters
Figure 31: Target groups, April 2015
Knowledgeable optimists (23%)
“Hard-working” self-believers (25%)
Conservative savers (25%)
The unconcerned (27%)

The Consumer – Meet the Mintropolitans

Why Mintropolitans?
Who are they?
Figure 32: Demographic profile of Mintropolitans versus Non-Mintropolitans, by gender, age and personal income
Figure 33: Demographic profile of Mintropolitans versus Non-Mintropolitans, by marital status, city tier and education level
Mintropolitans are active and sophisticated investors
Figure 34: Ways of managing household disposable income, by consumer classification, April 2015
Figure 35: Important consideration factors in choosing investment products, by consumer classification, April 2015
Figure 36: Opinions on the credibility of information sources for choosing investment products, by consumer classification, April 2015
Mintropolitans adopt a sound investment strategy

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